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If you have a backup, then uninstall both copies of DB2 and reinstall the latest, and restore backup. I don't believe that you can upgrade DB2 Express-C 9.5 in the manner in which you attempted.

If you don't have a backup of the databases (hard to believe you would attempt upgrade without a backup), then the databases should still remain after you unistall DB2, and then you will have to manually recatalog them on the path (see Catalog db on path in doc) after you reinstall DB2. Then you will have to run the update db program to bring it up to 9.7 (see instructions for the name of this program).

I did a New V9.7 install in anther machine and restored a database ("Jazz2" in this instance) from the V9.5 backup. It gave me this message:
================================================== =======
"SQL2519N The database was restored but the restored database was
not upgraded to the current release. Error "-980" with tokens
"*N" is returned.

Explanation:

The database backup that you restored is from a previous release of DB2
database product. After the database files were restored, an attempt was
made to upgrade the database to the current release. The database
upgrade failed.

The database restore was completed but the database was not upgraded.

User response:

Review the SQLCODE (message number) returned for more information. Make
any corrections and issue the UPGRADE DATABASE command before accessing
the database. "

A disk error occurred that prevented successful execution of the current
and subsequent SQL statements. The application program is not permitted
to issue additional SQL statements. For example, a recovery routine
associated with the application program cannot issue additional SQL
statements. The database is marked as needing recovery and all
applications using the database are prevented from accessing the
database.

The statement cannot be processed.

User response:

Record all error information from the SQLCA, if possible. Terminate all
applications using the database. Determine if the error is a hardware
error. Restart the database. If recovery is not possible, restore the
database from a backup copy.

If installing the sample database, drop it and install the sample
database again.

sqlcode: -980

sqlstate: 58005

************************************************** **

Please see the attached db2diag.log for the error trace. Thank you very much for your help.

was it an online/offline backup
verify in the doc if upgrade on this type of db2 is supported

Best Regards, Guy Przytula
Database Software Consultant
Good DBAs are not formed in a week or a month. They are created little by little, day by day. Protracted and patient effort is needed to develop good DBAs.
Spoon feeding : To treat (another) in a way that discourages independent thought or action, as by overindulgence.
DB2 UDB LUW Certified V7-V8-V9-V9.7-V10.1-V10.5 DB Admin - Advanced DBA -Dprop..
Information Server Datastage Certifiedhttp://www.infocura.be

I did a New V9.7 install in anther machine and restored a database ("Jazz2" in this instance) from the V9.5 backup. It gave me this message:
================================================== =======
"SQL2519N The database was restored but the restored database was
not upgraded to the current release. Error "-980" with tokens
"*N" is returned.

It looks like the db2diag.log you attached is from the "upgrade db" attempt, not from the restore you performed before that (v9.5 -> v9.7 restore). You need to determine why restore failed with -980 (possibly some tablespace was not restored - ie. containers need to be redefined?) and redo it again. The db will be migrated during restore if everything gets restored correctly.

(E:\DB2\NODE0002\JAZZ\content_tablespace) is the tablespace directory for the backuped (source) database, it is located in a remote machine A.

I did a DB backup in machine A, then copy the backup file to machine B and did the restore there. The restore failed with the above error. During the restore process, machine A is inaccessible to machine B.

The command I used to do the restore is:
restore database Jazz2 user db2admin using TP$dbadmin$96 from "C:\Users\TestPro\Backups\Remote DB Backups" taken at 20111018212239
into JAZZ301; and it ended up with the above error.

Then I tried:
restore database Jazz2 user db2admin using TP$dbadmin$96 from "C:\Users\TestPro\Backups\Remote DB Backups" taken at 20111018212239
into JAZZ301 REDIRECT;
set tablespace containers for 3 using (FILE "C:\DB2\NODE0000\JAZZ301_TS" 40000 );
The problem is the set tablespace containers command frozen the session -- nothing happened.

A quick sum up on the situation:
1. Machine A is running with RTC2.0.0.2 using DB2 9.5 as repository DB. It is a Windows 2003 32 bit machine.
2. Machine B is Windows 2008 R2 64 bit running with CLM3.0.1 using DB2 9.7 as repository DB.
3. I need to migrate the Jazz source control to CLM3.0.1 in B machine. So I set out to restore a DB backup made in machine A to be restored in Machine B.
4. In machine A, the tablesapce container is located in E:\DB2\NODE0002\JAZZ\content_tablespace. During restore process, machine A is inaccessible to machine B.
5. The command used to restore is:
restore database Jazz2 user db2admin using TP$dbadmin$96 from "C:\Users\TestPro\Backups\Remote DB Backups" taken at 20111018212239
into JAZZ301 redirect;
Then I was prompted the following message:
"restore database Jazz2 user db2admin using from "C:\Users\TestPro\Backups\Remote DB Backups" taken at 20111018212239 into JAZZ97 redirect
SQL1277W A redirected restore operation is being performed. Table space
configuration can now be viewed and table spaces that do not use automatic
storage can have their containers reconfigured.
DB20000I The RESTORE DATABASE command completed successfully."
6. So I run command:
set tablespace containers for 3 using (FILE "C:\DB2\NODE0000\JAZZ301_TS" 40000 );
7. Nothing came out from the Command Editor. The green triangle button turned grey. Clicking on the red square button has no response.
8. error appeared in the db2diag.log exerted as follow:

Now I have a lot of other pressing problem, as show in db2diag.log
What should I do?

I am a Java developer happended to be responsible to upgrade ibm Team Concert from 2.0.0.2 to 3.0.1 and run into mountains of db2 trouble. There is no db2 admin in my company to help me out. Thanks for all your help.

This message indicates that the drive where your db logs are stored has ~3.3 GB of free space. Check db cfg for this db (db2 get db cfg for db qm) for location of db logs. Possibly, they're stored on the same drive as your tablespace containers. Free up some space on this drive or just ignore the message if you think the amount of free space is sufficient for now. You can also stop the message by disabling health monitor.